Reforming the International Monetary System in the 1970s and 2000s: Would an SDR Substitution Account Have Worked?
Tuesday, 11 February 2014
This paper analyzes the discussion of a substitution account in the 1970s and how the account might have performed had it been agreed in 1980. The substitution account would have allowed central banks to diversify away from the dollar into the IMF’s Special Drawing Right, comprised of US dollar, Deutschmark, French franc (later euro), Japanese yen and British pound, through transactions conducted off the market.
Monday, 10 February 2014
Seventy years ago this July, representatives of the Allied and United Nations then engaged in the final year of the Second World War gathered at the Mount Washington Hotel, Bretton Woods, New Hampshire, to draft a truly remarkable document.
Friday, 7 February 2014
A previous post, here, discussed the tensions in the internal governance of international banks, specifically the balance between growing the balance sheet and risk management. There is, however, another tension between efficiency and stability that also requires a judicious balance. Since the global financial crisis, regulatory reforms have grappled with this tension.
Tuesday, 4 February 2014
CIGI is pleased to announce the appointment of Hongying Wang as a CIGI Senior Fellow, effective immediately.
Promoting the International Use of Emerging Country Currencies: The Case of Local Currency Debt Issuance for Latin America and the Caribbean
Friday, 24 January 2014
This paper focusses on the use of a currency to denominate liabilities such as loans or bonds — more precisely, the value of being able to issue debt externally in one’s own local currency. It considers, in particular, the countries of Latin America and the Caribbean, arguing that global currency markets remain dominated by the US dollar and a very few other global currencies.
Wednesday, 22 January 2014
The premise of this blog is simple: prospects for global growth and development are clouded by a miasma of uncertainty that stifles investment and demand. The analytics of the problem are captured by the option value of waiting — the notion that uncertainty creates an incentive for individuals to "wait and see" rather than invest and spend. A similar fog of uncertainty prevailed during the years of stagnation in the Great Depression; FDR's admonition, "the only thing we need to fear, is fear itself," was intended to rouse people from the stupor of uncertainty and get the economy moving again.
Tuesday, 21 January 2014
After some improvement in the global economy in 2013, today’s release from the International Monetary Fund (IMF) suggests that more progress will be made in the year to come. The recovery in advanced economies is gaining traction, but with the accumulation of government debt and slow balance sheet adjustments, the IMF indicates that it is not yet time to tighten monetary policy. Emerging economies are expected to maintain their strength as many of them return to potential output from their cyclical peaks.
Monday, 20 January 2014
The start of a new year is a time of resolve. This certainly appears to be the case with respect to European Union President Barrasso, who last week boldly--some might say rashly--predicted that 2014 would be the year of European renaissance. I hope he is right; I fear he may be disappointed.
Monday, 20 January 2014
CIGI is pleased to announce the appointment of Miranda Xafa as a CIGI Senior Fellow, effective immediately. At CIGI, Ms. Xafa’s research will focus on sovereign debt crises and drawing lessons from the Greek debt restructuring.
Thursday, 16 January 2014
An article in Italy's Il Foglio cites CIGI Senior Fellow Richard Gitlin's presentation, on his (with CIGI Fellow Brett House) proposal for a Sovereign Debt Forum, to the executive board of the International Monetary Fund.